Trade between the two countries declined to US$860 million in 2025, prompting renewed calls for faster border clearance and better dispute resolution.
Kenya and Tanzania are seeking to strengthen bilateral trade by addressing 14 outstanding non-tariff barriers, with officials warning that the success of regional integration will depend on whether traders experience tangible improvements at border crossings.
Tanzania’s Deputy Minister for Foreign Affairs and East African Cooperation, James Millya, said the two countries had identified 68 trade barriers, of which 54 had been resolved.
Speaking during the Global Trust Summit in Nairobi, Millya said the remaining obstacles would test the effectiveness of bilateral cooperation, particularly at the Namanga and Holili border points.
“The last fourteen are where trust is won or lost,” he said.
The outstanding barriers persist despite the two countries sharing an East African Community customs union and common market. Traders continue to face repeated inspections, delays and unexpected charges, increasing the time and cost of moving goods across the border.
Millya cited bilateral agreements signed in May 2026 that include common standards intended to prevent goods already certified from undergoing repeat inspections. The agreements also provide for a 30-day window for resolving disputes and quarterly reporting on implementation.
Tanzania has also removed its Industrial Development Levy on a range of Kenyan goods, he said.
However, the progress in removing barriers has coincided with a decline in bilateral trade. Millya said trade between the two countries fell from approximately US$950 million in 2024 to US$860 million in 2025.
He attributed progress on the barriers to sustained engagement between the two governments, technical cooperation through the Joint Trade Committee and Joint Permanent Commission, and input from the private sector.
The deputy minister acknowledged that traders who encounter problems still lack a clear channel through which their complaints can be addressed.
To improve accountability, Tanzania will designate a focal point to follow up trade complaints with Kenya within the agreed 30-day period. Millya also proposed regular consultations involving traders, truckers, women and young traders operating at Namanga and Holili.
He said the effectiveness of the measures should be assessed through practical outcomes, including quicker clearance of goods, fewer repeat inspections and timely resolution of complaints, rather than the number of agreements signed.
The discussions reflect a wider concern at the Nairobi summit over the gap between policy commitments and their implementation.
Kenya’s Prime Cabinet Secretary Musalia Mudavadi told the gathering that trust was essential to institutional credibility and economic prosperity, arguing that institutions must demonstrate integrity, fairness and measurable results.
He described trust as economic infrastructure, saying contracts and legal protections alone could not replace the value of integrity in commercial relationships.
The Global Trust Summit, taking place from October 21 to 23, brings together public officials and other stakeholders to explore how accountability and public confidence can support economic cooperation and stronger institutions.
For businesses operating across East Africa, the Kenya-Tanzania discussions underscore the importance of turning regional integration commitments into predictable border procedures and lower transaction costs.
